CHARTER FOR THE AUDIT AND FINANCE
COMMITTEE OF THE PERALTA COLLEGES
MISSION STATEMENT
The Audit and Finance Committee shall assist the Governing Board in fulfilling
its oversight responsibility with respect to the financial reporting process and
integrity of the Peralta Colleges’financial statements; the development of the
annual budgets that are realistic in scope and content and understandable to all
interested parties; the systems of internal control; the performance of the
independent auditors and the internal audit function; the independent auditors’
qualifications and independence; and the Peralta Colleges’ compliance with legal
and regulatory requirements. The Committee shall take all appropriate actions to
set the overall tone for quality financial reporting, sound business risk practices,
and ethical behavior. The Committee will pursue a goal to achieve the best
financial operations when compared to other Community Colleges.
ROLES AND RESPONSIBILITES
The Committee shall report to the Governing Board on matters requiring its
attention and recommend action based on the Committee’s review and evaluation
of budgeting, accounting, audit and financial reporting issues, on the basis of
oversight of the systems of internal controls and preparation of financial
statements. It is not the responsibility or duty of the Committee to plan or conduct
audits or to determine that financial statements are complete, accurate, and in
accordance with generally accepted accounting principles. Management is
responsible for the preparation, presentation, and integrity of financial statements
and for the appropriateness of the accounting principles and reporting policies
that are used. The independent auditors are responsible for auditing financial
statements.
The Committee shall:
A.
Review and evaluate the budget development process for content and
presentation methodology prior to submittal to the Governing Board for
approval.
B.
Review and evaluate all interim reports on budget execution and status.
C.
Recommend the appointment of the external auditors, considering the
recommendation of the Vice Chancellor for Financial Affairs/Chief
Financial Officer, for approval by the Governing Board.
a. Review and evaluate the annual audit scope and fees of the external
auditors.
b. Evaluate the independence of the external auditors.
c. Evaluate the report of the external auditors regarding the results of the
annual audit, including but not limited to:
i. The audited financial statements and management letter of
recommendations.
ii. The adequacy of system internal controls.
iii. Management cooperation with the external auditors.
iv. The adequacy of accounting policies and practices, including
the level of compliance with governmental regulations, recent
professional pronouncements and their impact on the financial
statements.
D.
Confirm with management and the independent auditor that the annual
financial statements disclose all material off-balance sheet transactions,
arrangements, obligations, and other relationships with unconsolidated
entities or other persons that may have a material current or future effect
on the financial condition, changes in financial condition, results of
operations, liquidity, capital expenditures, capital resources, or significant
components of revenues or expenses.
E.
An Inspector General, who reports directly to the Governing Board,
assumes responsibility for internal audit of both financial and operational
functions, with the Audit and Finance Committee as the initial point of
contact. The Committee will:
a. Review and evaluate the performance of the Inspector General on a
periodic and scheduled basis.
b. Review and evaluate the results of major operational or compliance
audits and make appropriate recommendations to the Governing Board
with respect to the findings involved.
c. Review the scope of audit coverage and the applicable schedules.
F.
Establish procedures for the receipt, retention and treatment of complaints
or concerns received by the Peralta Colleges regarding accounting,
internal accounting controls or auditing matters, including confidential,
anonymous submissions from employees.
G.
Regularly meet for approximately two hours at 5 PM on the Thursday
following the second Tuesday of each month from September though July.
a. The Vice Chancellor for Financial Affairs/Chief Financial Officer will
provide staff support for the Committee.
b. All meetings will be posted and conducted in accordance with the
Sunshine laws of the State of California and will be open to the
public.
c. Additional meetings may be called, including closed sessions, when
circumstances so dictate.
d. Minutes of each session shall be prepared, approved at the following
meeting, and retained in accordance with established retention policy.
e. A majority of the Committee of three Trustees shall constitute a
quorum for the transaction of business at any meeting thereof, and the
act of a majority of the members of the Committee present at any
meeting at which a quorum is present shall be the act of the
Committee.